RESOLUTION
AUTHORIZING CITY TO ENTER INTO A CONTRACT WITH HUD FOR LOAN GUARANTEE
ASSISTANCE AND TO EXECUTE A VARIABLE/FIXED RATE NOTE RELATING TO
THE SECTION 108 LOAN GUARANTEE PROGRAM.

BY
COUNCILOR GILBERT:

WHEREAS,
the city of Duluth is an entitlement community and is eligible to receive
CDBG funding; and

WHEREAS,
the city is an entitlement entity and has the ability to make application
for Section 108 loan guarantee funds; and

WHEREAS,
the city under the Section 108 program has the authority to pledge future
entitlement grants to guarantee the repayment of any loan funds not repaid
by participation projects; and

WHEREAS,
the city applied to HUD for funds available through HUD’s Section
108 loan guarantee program to provide financial assistance to certain
rental housing development projects; and

WHEREAS,
HUD has accepted said application and desires to provide said Section
108 loan guarantee program funding to the city.

NOW,
THEREFORE, BE IT RESOLVED, that the mayor and the city clerk are hereby
authorized to enter into a contract with HUD for loan guarantee assistance
under Section 108 and to execute the variable/fixed rate note substantially
in the form of those on file in the office of the city clerk as Public
Document No. __________ relating to the Section 108 loan guarantee
program.

FURTHER
RESOLVED, that the proper city officials are hereby authorized to execute
any additional documents necessary to effectuate the Section 108 loan
guarantee program transaction with HUD.

STATEMENT
OF PURPOSE: The city previously authorized application to HUD for Section
108 loan guarantee program funding in order to provide financial assistance
for certain rental housing development projects including Village Place.
HUD has been reviewing the city’s Section 108 loan documents with
Village Place and is ready to give its approval to proceed with the transaction.
The purpose of this resolution is to complete all city council actions
necessary to enter into the Section 108 loan transaction with HUD and
Village Place.